How To Check Old Age Pension Status? A Step-by-Step Guide

Each day, you put in a little extra at work so that you can comfortably sit by your loved ones and live a life of comfort after your retirement. This golden phase is beautiful to realise long-held dreams and pursue hobbies, but only if you are financially prepared and regularly track old age pension. Retirement and pension planning are financial instruments that can shape how you can live life in your golden years. From learning old age pension eligibility to understanding how to check pension status online, read on to add a layer of security to your old age.

• Dive into the concepts of old-age pension eligibility and strategically track old age pension for a steady post-retirement income.
• Understand different investment options offered under the NPS plan and also learn to check pension status online.
• Get clarity on old age pension eligibility criteria and how to check old age pension.
• Learn how to apply for the old age pension plan, do pension check and navigate smoothly.
• Check pension status online and stay updated on your pension balance.

Old-age pension funds are investment plans with an inbuilt annuity feature. In these funds, you invest a portion of your monthly income for your post-retirement life. It ensures you have a steady flow of income even after you stop earning. Usually, a pension plan will have a lock-in period and restrict withdrawals during the accumulation phase. This disciplined savings routine will help you build a corpus after retirement.One of the most common old-age pension plans is the National Pension Scheme (NPS). Regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and the Central Government. In this, your savings are pooled into a diversified portfolio managed by experts. These experts are PFRDA managers who invest your money into government bonds, shares, and debentures, among other instruments. With time, your investment grows and helps you build a substantial corpus with the returns earned. Today, you can also check old-age pension status online from anywhere.

Like the majority of Indian citizens, if you too decide to invest under the NPS, you will be given investment options to choose from.

Auto choice

In scenario one, if you cannot decide how to invest your money, your savings will be invested as default under the Moderate Life Cycle Fund of the 'auto choice' option. After considering your age, appropriate options are chosen to invest your hard-earned money.This option is an easy way to invest if you lack knowledge about financial instruments. When you choose this option, your investments are made in a life cycle fund, which involves investing your money in a pre-defined portfolio. Proportions between the three asset classes change as you age, with lesser money in asset class E and more towards C and G.Below are three options available under the 'auto choice':

• LC75: The Aggressive Life Cycle Fund focuses your money exposure in equity with a 75% investment till the age of 35 and reduction as you head closer to your retirement age.
• LC50: The Moderate Life Cycle Fund focuses your money exposure in equity with a 50% investment till the age of 35 and reducing as you head closer to your retirement age.
• LC 25: The Conservative Life Cycle Fund focuses your money exposure in equity with a 25% investment till the age of 35 and reducing as you head closer to your retirement age.

Note: If you do not choose between the three options available, you get the Moderate Life Cycle Fund by default.

Active choice

In this case, you can decide how to invest your pension money under the following options:

• Asset class E: Invest in equity market instruments.
• Asset class C: Invest in fixed-income instruments, excluding government securities.
• Asset class G: Invest in government securities.
• Asset class A: Invest in alternative investment schemes.

As defined by PFRDA, you have the freedom to invest all your pension money in asset classes C or G, and up to 50% in asset class E, and a maximum of 5% in asset class A. Alternatively, you can distribute your savings across the four asset classes under predefined conditions by the PFRDA.

The NPS plan has clear guidelines that help you check pension status online, know old age pension eligibility criteria and secure your retirement.

• Minimum old age pension eligibility to receive is ten years. As a central government employee, you are eligible for a pension after completing ten years of service.
• You are eligible for the NPS irrespective of the sector of your work, corporate or government. You can check old age pension status online.
• Your pension is calculated on your last basic pay or an average of the basic pay earned in the last ten months of your job, whichever is higher. As per the rules, a pension is 50 % of the emoluments or average emoluments, whichever is higher.
• One important component to track old age pension, you must know that the minimum pension paid by the Indian government is ₹ 9000 monthly, and the highest being 50% of the pay at ₹ 1,25,000 monthly. Investing in NPS offers plenty of death benefits like your pension is payable till the day of your demise.

Also read: 4 Types of Pension Plans Most Preferred for Retirement Planning

Now that you know the old age pension pension eligibility, and have you decided to apply for the old age pension scheme? Here is how you can apply:

1. Visit your local Social Welfare Department and procure a form. Fill out the application with details like your name, age, date of birth, annual income, and voter ID number, among others.
2. Submit your application form with the mentioned documents to either a Tehsil or a District Social Welfare Officer.
3. After verification, the Social Welfare Department will recommend you to the District Social Welfare officer.
4. The District Level Sanctioning Committee (DLSC) sanctions your pension.

Now that you know how to apply, learn how to check old age pension status here.

Also read: Link Pension Funds in India - Knowing the Types & Benefits

With all the formalities taken care of, are you wondering how to check old age pension status? Today, it is easy to track old age pension status online. Here is what you can do:

• To check old age pension status online, visit the PFRDA website or the state’s pension website.
• Fill in your Permanent Retirement Account Number (PRAN) along with the financial year.
• Click the search button to check your pension status online. Now you don't need to rely on an old pension check method of visiting the office.

Log into the National Securities Depository Limited (NSDL) portal with your ID and password given by the Central Record Keeping Agency (CRA) to track old age pension balance.

Pension funds in India are a great way to save for retirement while helping you live a steady lifestyle. Though there is no definite answer for how much you should set aside in your pension fund, approximately 30% of your income is a good amount if you start young. It will help you stay disciplined with your savings, ensuring your golden years are spent worry-free. But how to know pension status? Today, besides offering tax benefits, you can also check old-age pension status online, all from the comfort of your home. So seize the opportunity and ensure you have a financially secure tomorrow. Also read: Everything About National Pension Scheme Tax Rebate